The most common and most likely answer to this crossword clue is the 7 letter word TEMENOS
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The straight part
We know that "sacred place" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case sacred place = temenos.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
Crossword Answer definitions
TEMENOS noun- A piece of ground surrounding or adjacent to a temple; a sacred enclosure or precinct.
- A piece of land marked off from common uses and assigned as an official domain, especially to a king, chief, or god.
- A sacred circle where one can be oneself without fear.